Assets
The Walt Disney Company (TWDC) operates in 172 countries and presents 1,300 radio and television channels broadcasting in 53 languages. TWDC is one of the world's largest licensors, as well as the largest publisher of children's literature in the world. In Europe and Latin America, Disney tops the list of distributors of video and DVD and Blu-ray products. The TWDC video library has more than 3 thousand films. TWDC owns various companies, including Pixar, Marvel, ABC-International Television, ESPN, TouchStone and others.
Internet audience
2023: Disney + Service Popularity Map by Country
2022:152 million paid subscribers to the Disney + service
2018: Top 20 internet giants by size of internet audience
Disney in Russia
Walt Disney Company CIS, a subsidiary of The Walt Disney Company, was founded in April 2006. The CEO of Walt Disney Company CIS is Marina Zhigalova-Ozkan. In Russia and the CIS countries, the company develops such business areas as: film production and rental; stage productions; release of licensed DVDs and Blue- ray™ discs; production and distribution of television content, Disney Channel, licensing of consumer goods - clothes, toys, products for children, stationery, food, cosmetic products, etc.; licensing of publishing activities - books and magazines for children; production and distribution of mobile and Internet content; development and distribution of games for PC and consoles, as well as the production and publishing of games for social networks.
2022: Loss of $195 million in the quarter due to withdrawal from Russia
Walt Disney lost $195 million in the first quarter of 2022 due to leaving Russia. Losses are associated with the impairment of intangible assets (Disney Channel) in the Russian Federation, according to the company's statements published in mid-May 2022. At the same time, the company does not disclose revenue and other financial indicators for the Russian market.
In March 2022, Walt Disney, which owns Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, announced a halt to all its activities in Russia, including content production and licensing, amid a Russian special operation in Ukraine.
On March 1, 2022, the company temporarily stopped shipping its films to the country. Now, according to Disney representatives, "all other types of business activities" in Russia will be suspended - licensing content and products, the activities of Disney Cruise Line, National Geographic magazine and the channel of the same name.
Disney CFO Christine McCarthy commented on the decision, noting that Russia and Ukraine make up approximately 2% of the business, which is "not such a significant figure" for the company.
At the same time, despite the departure from Russia, the Disney + streaming service in January-March 2022 increased the number of subscribers to 137.7 million, which is 7.9 million more than last quarter. For comparison, the Netflix streaming service lost 200,000 subscribers at the beginning of the year. At the same time, Disney's quarterly revenue grew by 23% in annual terms, to $19.25 billion.
By May 12, 2022, it is known that a new Star Wars franchise series will soon be released on Disney +, as well as the premieres of Black Panther, the Avatar sequel and the Toy Story prequel. All this should attract new users[1]
Performance indicators
2020: Revenue decline by 6%, to $65.39 billion, net loss - $2.83 billion
At the end of fiscal 2020, Disney raised $65.39 billion, which is 6% less than a year earlier. The company received a net loss of $2.83 billion, while in 2019 the company registered a net profit of $14.85 billion.
 | It was a year unlike any other in our lives and certainly in the history of Walt Disney, "said Bob Chapek, CEO of the company. |  |
Disney sales fell, and activities became unprofitable for the first time since at least 1989 due to the COVID-19 coronavirus pandemic, which led to the closure of many of the company's amusement parks and cinemas. Under these conditions, the company decided to rely on streaming services. The audience of the Disney + service by the beginning of January 2021 reached 94.9 million users against 26.5 million people a year earlier.
Nevertheless, the online video platform development unit, which includes Disney +, registered a 5% decrease in revenue.
The revenue of the division managing thematic parks and cruise ships, as well as engaged in the production of consumer goods and video games, at the end of the year collapsed by 37%, to $16.5 billion, and the loss here amounted to $81 million. The company estimated the negative impact of COVID-19 on the operating result of this segment at about $2.4 billion.
Meanwhile, the revenues of the media division, including the National Geographic and ESPN networks, increased by 14% and reached $28.39 billion, profit - by 21%, to $9.02 billion. The revenue of the Disney film studio fell by 13%, amounting to $9.64 billion, profit - by 7%, to $2.5 billion.
On the day of the publication of the annual financial statements, Disney shares in electronic trading rose 1.6% and reached their highest value in the last year. The company's market capitalization over the year grew by more than a third, to $344 billion.[2]
History
2024: Hackers hack into Disney servers and steal 2.5GB of corporate data
In early June 2024, fans of Disney's closed multiplayer online video game Club Penguin hacked into the company's server and stole large amounts of internal corporate data. Disney closed this MMO in 2018, however, players continue to maintain its existence by serving private servers. It is assumed that hackers will be able to use documents stolen from the company to improve the unofficial version of the game. Read more here.
2023
100% Hulu buyout
In early November 2023, The Walt Disney Company announced a buyout from NBC Universal (a subsidiary of Comcast Corp.) of the remaining 33% of the share capital of the streaming service Hulu. According to Disney, she will have to pay at least $8.61 billion for the remaining 33% of Hulu shares. Read more here.
Laying off 7,000 people or 3.5% of the workforce
In February 2023, it was announced that Disney would lay off 7,000 people in order to reduce staff by 20% and reduce costs by $5.5 billion. Layoffs at the company will account for roughly 3.6% of Disney's global workforce.
In mid-April 2023, it was announced that Disney would lay off 1,000 employees next week, writes. Bloomberg The cuts will affect, among other things, 15% of employees of the Marvel Entertainment division.
2021: 2,000 employees transferred from California to Florida
At the end of July 2021, Disney announced the transfer of 2,000 employees from California to Florida. The company's decision is due to favorable tax incentives that are provided in the state for creating a large number of new jobs. For Disney, the benefits are estimated at $580 million.
Among the employees who will be transferred to Orlando, there are specialists responsible for finance, technology, communications, involved in HR and creativity. The average salary in these positions in the company is $120 thousand per year.
Disney confirmed the relocation plans and noted that Florida's choice is driven by a favorable state business climate, low income tax, comfortable traffic and lower home prices.
However, experts believe that the company's employees may face a difficult choice. Political science professor at Loyola Marymount University Fernando Guerra notes:
| | Capital and corporations are not loyal to their employees. They're not human, they don't have emotions. All they're concerned about is the bottom line. It was for this reason that Disney made this decision. For 2,000 employees, it's not a great choice because half of them are likely to lose their jobs if they don't decide to move. | |
Los Angeles-based business process relocation specialist Vanessa O'Donnell noted that California has lost many jobs recently, but in the case of Disney, it is obvious that the company wants to keep its headquarters in that state.
| | They just don't want all of their employees to be in a place where theme parks were closing for months longer than Florida, and that cost them a lot of income to lose. Disney has been furious with California over this, and the fallout can be traced to this decision. | |
Disney promises to work on the terms of the move of the highest paid employees. The company is poised to provide a "dynamic work environment" at its new Orlando campus.[3]
2020
Reduction of 32,000 employees due to COVID-19
On November 26, 2020, Disney announced the reduction of another 32 thousand jobs. Layoffs that will primarily affect theme park employees were the result of the COVID-19 coronavirus pandemic.
Disney intends to begin terminating employment contracts with employees in the first half of fiscal 2021. The company also warned that it could introduce further measures to improve its situation, including raising additional funding, refusing to pay dividends, reducing investments in film production and television projects, as well as putting on unpaid leave or cutting employees.
Disneyland in different countries of the world has been consistently closed since January 2020 due to the spread of coronavirus. As a result of many subsequent restrictions and strict measures to prevent coronavirus, including wearing masks and maintaining social distance, attendance at amusement parks collapsed. Some of them have not yet opened, and some are re-closing due to a new lockdown, as happened in France.
At the end of October 2020, Disney also announced a reorganization: with significant losses due to closed amusement parks and cinemas, it decided to bet on streaming services.
According to the TEA/AECOM study, Walt Disney ranks first in the world top 10 in terms of theme park visitors. The company is ahead of competitors by a significant margin: 155.9 million people visited Walt Disney Attractions parks around the world, 67 million people visited Merlin Entertainments Group, 53.9 million people visited OCT Parks China. The most popular was Magic Kingdom Park in Lake Buena Vista (Florida), visited by 20.9 million people.[4]
Dismissal of 28 thousand employees due to coronavirus
On September 29, 2020, Disney announced the dismissal of 28,000 people. The company is forced to reduce the number of personnel due to the COVID-19 coronavirus pandemic, which has hurt the media conglomerate business.
| | We have made a very difficult decision to start the process of reducing the staff at Disney Parks, Experiences & Products at all levels, "said Josh D'Amaro, head of this division. - No matter how terrible this step is, this is the only possible option that we have in light of the long-term impact of COVID-19 on our business. | |
He also noted that the company's management tried to avoid layoffs by reducing costs, suspending projects and optimizing operations, but these measures did not help.
According to Bloomberg, the cuts affected theme park employees, cruise ships, retailers, as well as management members. At the same time, the agency points out, about 67% of the dismissed employees worked part-time. It is noted that more than 100 thousand employees were involved in American Disney theme parks before the start of the pandemic.
Disney theme parks were closed due to the threat of the spread of coronavirus. Later, they began to be gradually opened, but the company was forced to limit the number of visitors to ensure their safety.
As noted by CNN, in mid-July 2020, a theme park was supposed to work in California, but its opening was postponed indefinitely. Another of the company's Florida resorts began opening in stages in July.
Shares of the media giant reacted negatively to the news of mass layoffs. On September 30, 2020, at preliminary auction at 12:57 Moscow time, quotes fell by 2.73%, to $121.98 per security.[5]
Sending 100,000 employees on unpaid leave
On April 19, 2020, Disney announced that it was sending 100,000 of its employees on unpaid leave. This corresponds to about half of the state.
These measures are associated with the spread of the coronavirus COVID-19, which had a strong negative impact on the activities of the American company: the pandemic led to the closure of hotels and amusement parks around the world.
According to the Financial Times, Disney left workers in Florida and Paris without maintenance, but the company promised to maintain a full social package for medical care. The first wave of vacations began on April 19, 2020.
In the United States, Disney employees have been invited from April 19 to apply for benefits from the state in the amount of $600 per week, which is provided for by the company's $2 trillion coronavirus support program.
In Florida, unemployed people are entitled to $275 a week for 12 weeks, the lowest benefit in the United States. Employees of the Paris "Disneyland" can expect that the authorities compensate them up to 84% of the salary.
At the same time, top managers of the company refused salaries, but did not refuse incentive payments. According to the newspaper, they make up most of their income.
It is assumed that measures to optimize costs at the expense of staff will help Disney save about $0.5 billion monthly.
| | Given that labor accounts for approximately 45% of operating expenses and 33% of total expenses, we assume noticeable savings, "analyst Alexia Quadrani of JPMorgan commented to the FT on Disney's plans. | |
The operator of Tokyo's Disneyland and water attraction park DisneySea announced that the parks would not open until mid-May 2020, although the company planned to do so as early as April 20. The temporary closure of amusement parks threatens the company with great financial difficulties, given that in the fourth quarter of 2019 alone they brought Disney about $1.4 billion.[6]
2010: Revenue - $38 billion
In the 2010 fiscal year, the company's revenue amounted to $38 billion.
1990
1965
1961
1955: Opening of the first "Disneyland"
1954
1942
1939
1938
1932
1932]]
1921: First Disney cartoon released - "Smehogram"
On March 20, 1921, Disney's first cartoon, Smehogram, was released.
Notes
- ↑ . The Walt Disney Company today reported earnings for its second fiscal quarter ended April 2, 2022
- ↑ THE WALT DISNEY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR EARNINGS FOR FISCAL 2020
- ↑ Walt Disney Moves Thousands of Jobs from California to Florida
- ↑ Disney to Lay Off 32,000 Workers as Covid-19 Lockdowns Restrict Theme Parks
- ↑ STATEMENT FROM JOSH D’AMARO, CHAIRMAN, DISNEY PARKS, EXPERIENCES AND PRODUCTS (DPEP)
- ↑ Disney stops paying 100,000 workers during downturn
Stock price dynamics
| Ticker company on the exchange: | NYSE:DIS |
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